Montana Hydro Initiative Defeated.

68 percent of Montana voters say no to seizure of privately owned dams

Montana voters on Tuesday resoundingly defeated Initiative 145, which would have allowed the state to consider buying a dozen privately owned hydroelectric dams, including Avista Corp.'s 550-megawatt Noxon Rapids hydro project, located in northwest Montana.

(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990629/AVALOGO )

With 72 percent of 869 precincts counted, Initiative 145 -- also known as the Montana Hydroelectric Security Act -- was failing by a vote of 68 percent to 32 percent.

"We are pleased with the decision of the voters in Montana," said Gary G. Ely, chairman of the board, president and chief executive officer for Avista. "This outcome will allow Avista to continue its longstanding role as a good corporate citizen and steward of resources in Montana."

Ely said that Avista has worked cooperatively with Montana citizens for many years. The company worked collaboratively with numerous public, private and state interests on its hydroelectric renewal and has provided jobs, recreation opportunities, community involvement, environmental protection and enhancement, as well as other benefits in its more than 50 years of operating in Montana. Avista has been recognized for outstanding environmental stewardship of its Clark Fork River hydroelectric project, which includes the Noxon Rapids dam.

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides electric and natural gas service to customers in four western states. Avista's non-regulated affiliates include Avista Advantage, Avista Labs and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA" and its Internet address is http://www.avistacorp.com/.

NOTE: Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation. All other trademarks mentioned in this document are the property of their respective owners.

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CONTACT: media, Hugh Imhof +1-509-495-4264, or hugh.imhof@avistacorp.com, or investors, Angela Teed, +1-509-495-2930, or angela.teed@avistacorp.com, both of Avista Corp.

Web site: http://www.avistacorp.com/